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Turkey transfers operating rights of 7 coal fields to private companies - Mr Donmez

Coal News - Published on Tue, 16 Oct 2018

Image Source: ET EnergyWorld
Reuters cited Energy Minister Mr Fatih Donmez said, in an effort to reduce the country's reliance on energy imports, Turkey has transferred the operating rights of seven high-potential coal fields to private companies. Once a darling of foreign investors, Turkey's energy sector, which relies almost entirely on imports, has been hit by a sharp decline in the lira. The currency has lost nearly 40 percent of its value this year, sparking worries over its impact on the wider economy and the banking sector.

State pipeline operator Botas raised prices for natural gas used in electricity production by 50 percent in August. Natural gas and electricity prices for residential use have also been hiked for three consecutive months.

Mr Donmez said that 19 million tonnes of coal would be produced with the new agreements, which is expected to halve annual imported coal costs.

He said that "Every move that will decrease our dependence on foreign countries and increase local production will make us stronger and more independent," adding the production would also help bring down Turkey's current account deficit. He did not give a time scale for the increased production.

The energy ministry said that the Turkish Hardcoal Authority signed agreements with Erdemir Madencilik, TUMAS and Emsa Enerji, while the Directorate of Turkish Coal signed agreements with Imbat Madencilik, FERNAS, Yapi-Tek and Koc Holding's Demir Export for the operating rights of the coal fields.

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Posted By : Rabi Wangkhem on Tue, 16 Oct 2018
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